Michigan – Guidance on Internet Taxation Provided

SALT Report 3485 – The state of Michigan has provided guidance on the expiration of the federal moratorium on state taxation of internet charges.  “The Internet Tax Freedom Act expires on November 1, 2014. The Department of Treasury is advising taxpayers that the state does not tax a service that directly enables users to connect to the Internet. This includes the purchase, use or sale of telecommunications by a provider of internet access service to the extent such telecommunications are purchased, used or sold to provide direct internet access. The Department will issue further guidance if and when either Congress or the Michigan legislature enacts legislation addressing the issue.”

For Further Information:

MI Sales and Use Tax Information